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dizposition

Sell your multifamily property

Owner-managed, under-rented, with plumbing and a roof coming due. The properties where a lender's inspection ended the last sale.

Multifamily Property at a glance

Typical deal size
$1M – $25M
Lease structure
Residential leases, gross
Typical term
12 months, some month-to-month
Escalations
Annual at renewal, market-driven
Individual residentsSection 8 voucher holdersStudent tenants near universitiesWorkforce housing tenants

Overview

What multifamily properties are really worth

Our read

Multifamily is the most durable demand story in commercial real estate and the most operationally demanding asset to own. Those two facts are inseparable. Housing demand does not disappear and no single resident matters much, but the property needs someone doing turns, chasing collections, and staying compliant with landlord-tenant law that varies by state and sometimes by city.

That operational intensity is why owner-managed properties are so consistently mispriced. An owner who does the maintenance themselves, screens their own tenants, and has not raised rents on long-term residents in years is running a property whose stated NOI reflects neither the real expenses nor the real rent potential. Both numbers are wrong, in opposite directions.

The risk that actually ends sales in this asset class is capital. Cast iron waste stacks, galvanized supply lines, original windows, and undersized electrical service come due in waves, and a lender's property condition assessment finds all of it. That is the moment a lot of owners discover that the conventional buyer pool has quietly closed.

Valuation

How we underwrite it

The method

We normalize before we capitalize. Stated expenses on owner-managed multifamily nearly always exclude a management fee and understate maintenance, so we underwrite to what third-party management actually costs rather than to what the current owner spends in cash.

On the revenue side we compare in-place rents to market by unit type and model a realistic pace to close the gap. Turns cost money and produce vacancy, so capturing below-market rent is a schedule, not a switch. Owners generally still see a higher number than trailing income supports, because the upside is real even discounted for the time it takes.

Deferred capital gets surveyed and priced up front. Plumbing stacks, electrical service, roofs, and windows are the expensive four, and pricing them in the first number is why our offers hold up where a financed buyer's retrades.

Regulation and covenants are read rather than assumed. Restrictions that run with the land survive the sale, and we would rather account for them than surprise either of us at closing.

What moves the number

  1. 01In-place rent versus market rent, which is the primary source of upside in most older multifamily
  2. 02Actual expense ratio rather than the seller's stated one, since owner-managed properties routinely understate expenses
  3. 03Unit mix and whether the configuration matches local demand
  4. 04Deferred capital — roofs, windows, plumbing stacks, and electrical panels are the expensive ones
  5. 05Rent regulation or affordability covenants and whether they run with the land
  6. 06Submarket supply pipeline, since new deliveries compress rent growth on older product first

Capital markets today

10-yr Treasury
5.24%
4.12% a year ago
SOFR
3.87%
4.2% a year ago
30-yr mortgage
7.28%
6.3% a year ago
CRE loan delinquency
1.53%
1.57% a year ago
CRE prices, YoY
6.58%
-2.7% a year ago

Sources: FRED DGS10, 2026-10-01 · FRED SOFR, 2026-10-01 · FRED MORTGAGE30US, 2026-10-01 · FRED DRCRELEXFACBS, 2026-04-01 · FRED COMREPUSQ159N, 2026-01-01

Diligence

What a buyer actually looks at in a multifamily property

  1. Check 01

    Rent roll against actual bank deposits

    Stated rent and collected rent diverge more in owner-managed multifamily than in any other asset class. Deposits are the truth.

  2. Check 02

    Trailing twelve expenses with owner adjustments removed

    Self-managed properties commonly omit management fees, understate maintenance, and capitalize repairs. The real expense ratio drives the real NOI.

  3. Check 03

    Deferred capital survey — roof, windows, plumbing, electrical

    Galvanized supply lines, cast iron waste stacks, and undersized panels are expensive, disruptive, and invisible during a walkthrough.

  4. Check 04

    Rent regulation, affordability covenants, and LIHTC status

    Restrictions that run with the land survive the sale and cap rent growth regardless of what the market does.

  5. Check 05

    Certificates of occupancy and any open code violations

    Unpermitted unit conversions are common in older multifamily and can make a unit unrentable or uninsurable once discovered.

  6. Check 06

    Security deposit accounting and lease compliance

    Deposits are statutory liabilities in most states. Poor accounting transfers to the buyer as a legal problem, not just a bookkeeping one.

Backfill risk

What happens if the tenant leaves

The tenant-goes-dark scenario

Multifamily has the best backfill characteristics of any commercial asset for one structural reason: demand is for housing, which does not go away, and no single tenant represents meaningful exposure. Losing one resident out of forty is a turn cost, not an event.

What replaces tenant risk is operational risk. The asset requires continuous management — turns, collections, maintenance calls, and compliance with a body of landlord-tenant law that varies enormously by jurisdiction. Owners who self-manage for decades often understate what that labor is actually worth, which is why the expense ratio on a self-managed property nearly always rises after a sale.

The genuine risk is capital, not vacancy. Older multifamily carries plumbing stacks, electrical service, roofs, and windows that come due in expensive, disruptive waves. An owner who has deferred those to protect distributions has built a liability that shows up exactly when a lender orders a property condition assessment. That is frequently the point at which a conventional sale falls apart and the owner calls a principal buyer instead.

Why this matters to you

Every buyer prices the tenant-goes-dark scenario, whether or not they say so out loud. It is the largest hidden input into the cap rate you get offered.

Understanding it before you go to market is the difference between negotiating and being negotiated with.

Who sells to us

Situations we see most often

  • Owner-operator retiring after decades of self-management
  • Inherited property that heirs have no interest in managing
  • Rents well below market and the owner unwilling to make the turns to capture it
  • Deferred capital reaching the point where lenders will not finance a conventional sale
  • Owner facing a maturity on a property that no longer appraises to the debt

Buy box

What we buy

  1. 01Garden and low-rise multifamily, $1M to $25M
  2. 02Owner-managed and under-rented
  3. 03Deferred capital priced in
  4. 04Regulated and covenanted properties considered

Process

How selling to Dizposition works

The full process
  1. Day 0

    01

    Send us the property

    Address, asset type, and the lease if there is one. That is enough for us to start.

  2. 02

    We underwrite it

    Our underwriting runs the income against current market pricing and the cost of capital. No lowball anchor.

  3. 10 minutes

    03

    You get a firm offer

    In 10 minutes, with the math shown. You will know exactly how we got there.

  4. As fast as 30 days

    04

    Close on your timeline

    As fast as 30 days, or as slow as you need. We are the principal, so the date is yours.

FAQ

Selling a multifamily property

My rents are well below market. Do I get credit for that?

Yes, though not the full spread. Capturing below-market rent requires turns, and turns cost money and time — often unit renovation, and always vacancy. We underwrite a realistic pace to market rather than assuming it happens at once, and that is usually still a meaningfully higher number than trailing income supports.

I manage it myself and my expenses look low. Is that a problem?

It is the most common adjustment we make. Self-managed properties usually omit a management fee and understate maintenance because the owner does the work. We normalize expenses to what third-party management actually costs. It is not a penalty, it is arithmetic.

The building needs new plumbing and a roof. Can I still sell?

Yes, and deferred capital at that scale is often exactly why a conventional sale fell through — a lender's property condition assessment flags it and the financing dies. We price it into the offer instead.

Some units were converted without permits. Does that matter?

It does, and you should tell us early. Unpermitted units can be unrentable or uninsurable once a jurisdiction notices, and legalizing them is sometimes possible and sometimes not. It is a priced item, not a dealbreaker.

How long does it take to sell a commercial property to Dizposition?

You get a firm written offer within 10 minutes of sending us the property. If you accept, you can close in as little as 30 days — most of that is title work and your own timeline. There is no listing period, no marketing, and no waiting on a buyer's financing contingency.

Can I sell my property as-is?

Yes. We are the buyer, so there is no lender requiring repairs and no inspection contingency to renegotiate against you. Deferred maintenance, a failing roof, an aging tank system — we price it into the offer rather than asking you to fix it first.

Can I sell with a tenant in place?

Yes, and in most cases a tenant makes the property more valuable to us, not less. We will ask for the lease, a rent roll, and any estoppel certificates. You do not need to deliver the property vacant.

What if my lease is short-term or about to expire?

Short remaining term is one of the main reasons owners come to us. A conventional buyer needs lease term to get financing, which is why short-dated assets sit on the market. We underwrite the real estate and the backfill prospects rather than the remaining term alone.

What if the property is vacant?

We buy vacant assets. Pricing shifts from an income approach to what the building and land are worth to the next user, which is a different calculation — but it is one we do routinely rather than one that disqualifies the property.

Do I need a broker to sell to you?

No. We buy directly, and there is no commission because there is nothing to market. If you already have a broker, we will pay them. Selling without one saves the commission, but you should understand you are also giving up price discovery — a broker's job is to find out whether someone will pay more than we will.

What documents do I need to get an offer?

The address and the lease are enough to start. To finalize, we will want the rent roll, the last two years of operating statements, the title commitment, any existing survey, and any environmental reports you already have. You do not need an appraisal or a broker package.

How do you determine your offer?

We underwrite in-place income against what the space would re-lease for, adjust for capital needs and any environmental tail, and apply a cap rate supported by comparable transactions. We show you the inputs. If you disagree with an assumption, we would rather argue about the assumption than about the number.

What are typical seller closing costs?

Title and escrow fees, any transfer or recording tax owed in your state, prorated property taxes, and payoff of any existing debt. Because we are the buyer, there is no commission and no marketing cost. Transfer tax varies significantly by state and is often the largest single line.

Will I owe capital gains tax when I sell?

Usually yes, on the gain above your adjusted basis, and depreciation recapture is taxed separately from appreciation. State treatment varies. This is a question for your CPA before you sign, not after — the structure of the sale can change the answer.

Can I do a 1031 exchange?

Yes. A 1031 exchange lets you defer federal capital gains by reinvesting in like-kind property, subject to a 45-day identification window and a 180-day closing window from the date you sell. You must have a qualified intermediary in place before closing — it cannot be arranged afterward. Most states conform to federal treatment, but a few do not.

Can I sell if I am behind on payments or facing foreclosure?

Yes, and speed is the reason to move early rather than late. We can close on a defined date, which is what a lender or a receiver generally needs to see. Send us the payoff figure and any notices you have received.

Can I sell a property I inherited or that is in probate?

Yes. Probate sales take longer because the court timeline governs, not ours, and multiple heirs need to agree on the price before anything can close. We are used to working around both. Inherited property also generally receives a stepped-up basis, which can change the tax math substantially.

What if there is environmental contamination?

Send it anyway. Environmental history is one of the most common reasons a conventional sale falls apart, and it is one of the reasons owners call us. We price the remediation and the residual liability into the offer rather than walking away at the Phase II.

Is there any cost or obligation to get an offer?

None. There is no fee, no listing agreement, and no obligation to accept. If our number does not work for you, you keep the underwriting we showed you and we part ways.

Markets

Top markets we buy multifamily properties in

10-minute offer

Ready to sell your multifamily property?

Send us the property and the lease. You'll have a firm offer, with the math shown, in 10 minutes.